Chemtrade Logistics Announces Successful Final Adoption of Rezoning Application for the North Vancouver Chlor-Alkali Facility

NORTH VANCOUVER, British Columbia--(BUSINESS WIRE)--Chemtrade Logistics Income Fund (TSX: CHE.UN; OTCQX®: CGIFF) (“Chemtrade” or the “Fund”) announced today that the rezoning application for its chlor-alkali facility, located in North Vancouver (the “Facility”), received final adoption at last night’s District of North Vancouver (the “District”) Council meeting. This marks the final step in the rezoning application process.

Subject to the terms outlined in a restrictive covenant entered into between Chemtrade and the District (the “Restrictive Covenant”), the final adoption of the rezoning bylaw enables Chemtrade to continue to produce liquid chlorine until the earlier of the expiry of Chemtrade’s prospective lease with the Vancouver Fraser Port Authority (the “Port”) or 2046. This certainty of long term continued liquid chlorine operations will allow Chemtrade to advance planned safety upgrades at the Facility.

The Facility has been operating safely since 1957 and is a key producer of liquid chlorine, which is used in the treatment of municipal drinking water in Canada. The Facility also produces caustic soda and hydrochloric acid - both products play important roles in industries with significant positions in Canada’s economic strategy including the energy sector, pulp and paper, technology, water treatment, and mining.

“Our facility represents 40 per cent of the available production capacity of liquid chlorine in Canada and plays a critical role supporting both safe drinking water for millions and the supply chains of major industries that are key economic generators for Canada. In total, over 60 per cent of the facility’s production stays in Canada, supporting Canadian businesses and industry,” said Scott Rook, President and CEO of Chemtrade. “We would like to thank the members of the District Council who supported our application, securing critical Canadian production of liquid chlorine, caustic soda and hydrochloric acid. We can now move forward with our plans for additional investments in capital safety projects aimed at improving reliability and safety.”

In response to concerns voiced by the District Council, Chemtrade made additional commitments secured by the Restrictive Covenant, including regular reporting and opportunity for oversight from the District, timebound liquid chlorine production aligned with the earlier of the termination of the proposed lease with the Port or 2046, and a commitment to ongoing community education and safety and technology reviews.

“Over the last three years, we have engaged deeply with the community, local First Nations, stakeholders, and all levels of government. We were happy to listen and to respond to concerns raised by members of District Council and the local community through updates to the rezoning application. We would like to thank the District Council for their diligence and commitment to an open and democratic process in reviewing a complex application with a variety of competing opinions,” concluded Mr. Rook.

Chemtrade will continue to engage with the Port to finalize its land lease for a portion of the Facility situated on Port lands. In 2025, Chemtrade and the Port entered into a non-binding letter of intent outlining terms of a new 20-year agreement.

About Chemtrade

Chemtrade operates a diversified business providing industrial chemicals and services to customers in North America and around the world. Chemtrade is one of North America’s largest suppliers of sulphuric acid, spent acid processing services, inorganic coagulants for water treatment, sodium chlorate, sodium nitrite and sodium hydrosulphite. Chemtrade is also one of the largest producers of high purity sulphuric acid for the semiconductor industry in North America. Chemtrade is a leading regional supplier of sulphur, chlor-alkali products, and zinc oxide. Additionally, Chemtrade provides value-added water solutions, as well as industrial services such as processing by-products and waste streams.

Caution Regarding Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking statements within the meaning of certain securities laws, including the Securities Act (Ontario). Forward-looking statements can be generally identified by the use of words such as “anticipate”, “continue”, “estimate”, “expect”, “expected”, “intend”, “may”, “will”, “project”, “plan”, “should”, “believe” and similar expressions. Specifically, forward-looking statements in this news release include statements regarding: Chemtrade’s belief that the adoption of the bylaw amendment secures the long term operational certainty and continued liquid chlorine production until the earlier of expiry of the prospective Port lease or 2046; Chemtrade’s ability to advance planned safety upgrades and the timing thereof; its intention to ensure the continued production of liquid chlorine and long term operations at the Facility; Chemtrade’s intention to move forward with plans for additional investment in capital safety projects; Chemtrade’s expectation that such projects will improve safety and reliability; and Chemtrade’s intention that it will continue engagement with the Port to finalize its land lease for a portion of the Facility situated on Port lands; and Chemtrade’s expectation that a new land lease would result in a 20-year agreement.

Forward-looking statements in this news release describe the expectations of the Fund and its subsidiaries as of the date hereof. These statements are based on assumptions and involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements for a variety of reasons, including without limitation the risks and uncertainties detailed under the “RISK FACTORS” section of the Fund’s latest Annual Information Form and the “RISKS AND UNCERTAINTIES” section of the Fund’s most recent Management’s Discussion & Analysis.

Although the Fund believes the expectations reflected in these forward-looking statements and the assumptions upon which they are based are reasonable, no assurance can be given that actual results will be consistent with such forward-looking statements, and they should not be unduly relied upon. With respect to the forward-looking statements contained in this news release, the Fund has made assumptions regarding: Chemtrade’s expectation that such projects will improve safety and reliability; Chemtrade’s belief that the adoption of the bylaw amendment secures the long-term operational certainty and continued liquid chlorine production until the earlier of expiry of the prospective Port lease or 2046; and Chemtrade’s expectation that the final land lease with the Port will be finalized on terms outlined in the LOI, including a lease term of 20 years.

Except as required by law, the Fund does not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or for any other reason. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement.

Further information can be found in the disclosure documents filed by Chemtrade Logistics Income Fund with the securities regulatory authorities, available at www.sedarplus.com.